Top Five Paying States for Stockbrokers

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How Much Do Stockbrokers Make in the Top Financial Districts in America?

Near major metropolitan areas, stockbrokers can earn a lot more compared to rural or smaller towns. These are the top five districts:

[1] – New York: With Wall Street located in Manhattan’s Financial District, New York City is where stockbrokers are paid the most. The average stock broker salary here was $141,250 in 2016.

[2] – New Hampshire: This state comes in second for highest stock broker salary in the nation at $110,350 (2016). The highest paying area was in the southern New Hampshire city of Nashua with stock brokers earning $103,490.

[3] – Massachusetts: The average stock broker salary in MA was $99,200 in 2016 or $47.69 hourly. Boston, MA is where securities sales representatives earn the most.

Average Stock Broker Salary (2005-2015)

Below, you’ll find data collected from the Bureau of Labor Statistics that show the average stock broker salary over a ten year period.

As you can see, just after the Financial Crisis of 2008, stock broker earnings dipped a little in 2009.

However, investment activity increased in the years following 2009. In fact, the Dow Jones Industrial Average reached its highest level ever (18,312.39) on May 19th, 2015. It has since gone beyond that level. Higher investment activity leads to increased incomes for registered representatives.

Salary Can Vary Depending on Brokerage Firm

Just like any other industry, different brokerage firms can pay varying amounts to their associates. Top brokerage firms like Merrill Lynch or Wells Fargo, may tweak their compensation plans for financial advisors (i.e. stockbrokers) on a year by year basis to improve performance.

The Different Ways Stockbrokers are Paid

Above and beyond an average stock broker salary, those in this field earn income in a few different ways. The accumulation can turn this career into a very lucrative profession for many.

(A) – Commissions:

Generally, as a stock broker matures into the profession, the base salary paid by the firm will decrease.

The main bread and butter then are the commissions generated from trading securities on behalf of clients.

In order to receive a commission from doing this one must obtain the Series 7 License.

(B) – Bonuses:

Incentive bonuses are what make careers in this field very profitable. Typically, the more revenue you bring into a firm, the higher your bonuses will be.

Brokerages desire their advisors to seek out high net worth clientele (those with over $250,000 net worth) that will generate the most revenue for the firm.

There are bonuses for:

Attracting new clients within a year,

Selling certain financial products like exchange-traded funds, and

Years of service bonuses.

(C) – Fees:

Finally, financial advisors can earn fees by providing strategies and analysis to their clients.

In order to receive fees for doing these financial services one must obtain the Series 65 or 66 License.

Fee-Based – Financial advisors who are fee-based earn fees for services rendered but also earn commission on selling investment products to clients.